According to Stretch Zone's 2025 Franchise Disclosure Document, development fees and initial payments by developers are deferred until the first franchise under the Area Development Agreement opens. This means that developers entering into an area development agreement with Stretch Zone will not be required to pay these fees upfront. Instead, the payment is contingent upon the opening of the first franchise location within their designated area.

This deferral of fees can be a significant benefit for prospective Stretch Zone area developers. It reduces the initial financial burden and allows them to allocate resources towards establishing the first location. This arrangement aligns the franchisor's interests with the developer's success, as Stretch Zone only receives the fees once the developer has made progress in opening their first franchise.

It is important for potential Stretch Zone developers to understand the specific terms and conditions related to the Area Development Agreement, including any pre-opening obligations that must be met. Developers should also confirm the exact amount of the development fee, which, as stated in Item 7, ranges from $119,000 for 2 units to $267,750 for 6 units.